PCP on a new car

joer.flyer

Hi there,

Pretty new to this, so any help anyone can give would be great.

I've been driving company cars more or less since I passed my test, and my other half has always had the cheapest runaround money can buy, bought cash so we've never had to worry about credit, other than a small personal loan and the mortgage.

Situation has now changed, we're expecting a little one in a few months and as we live a few miles from her family I don't want her to be isolated and to have a lack of freedom. We're looking for something with 5 doors, Isofix and boot space big enough to get the pram/push chair in but more than anything else it has to be safer than the W reg Ka she's driving now (Which happens to be on its last legs anyway).

It seems car credit isn't car credit any more, it's 'PCP'.

We were looking at used fiestas, but were disappointed to see that we could be paying £5-6k for something a good few years old and approx. £140/m over 5 years on finance. I'm not sure they were big enough anyway.

Then we were looking at the new Focus. It appears that on 'PCP' we can get a brand-spanker for £145/m (as long as we do less than 6k miles per year which we will, easily) with no depost (offer means dealer gives £2k towards deposit) and we can buy it for just over £6k after 2 years. So what's the catch? Why is it seemingly better to buy the car used for only slightly more than a used Fiesta, when it's 3-4 years younger and still under warranty? Do they make it difficult for you to give it back if you don't want it after 2 years? It just doesn't seem right.

The same applies with new Kas and new Fiestas. There's about £5/month and £1k purchase price after 2 years between them all. It makes no sense!

Thanks.

Tiddlywinks

I think you need to clarify those figures for the Focus as they do seem very low for a car with a starting list price of over £13,000.

LandyAndy

Tiddlywinks wrote: »

I think you need to clarify those figures for the Focus as they do seem very low for a car with a starting list price of over £13,000.

Yep.

Dealer deposit contribution £2000
Final balloon £6000
2 years at £145 pm £3480

Total £11480.

List Price of cheapest Focus 1.6 Studio £13995

Nothing else with a list under £16000

joer.flyer

Tiddlywinks wrote: »

I think you need to clarify those figures for the Focus as they do seem very low for a car with a starting list price of over £13,000.

Thanks for the nudge... I missed the customer deposit, £2k. Even so though, the customer deposit on the Fiesta is only £500, and it's more per month for the fiesta. I still don't see why I'd buy used.

forgotmyname

Because as someone posted the other day they didnt have the £6000 to buy the car when the deal ended.

So taking out a loan to buy something you already spent £5500 on.

You can get a 2012 focus for £8000. Some sucker already lost £5000+ in less than 2 years.

Buy one thats 3 years old and you save even more. (£6000 for a 3 year old car) The depreciation after 3 years slows down. After 5 years its neglible.


£2000 deposit and £3500 over 2 years. To either hand it back or spend another £6000 on it?

Madness. You dont need to spend that much to get a reliable car.

[Deleted User]

Take a look at a used Nissan Note or Honda Jazz... super practicality, low running costs and excellent reliability.